Market Japan
I don’t think Japan is a good market for toys r us to enter. First, small retail store is the Japanese living style; it is very hard for them to change this style. Second, the urban layout and infrastructures are totally differing from the North America. Third, the birth rate in japan is quite low so the toys sales will not be easy to reach the expectations. And fourth, since the housing price is extremely high in Japan, so the cost of the retail store rent will be high as well.
By the way, I come up with a new problem. Nationalism is a complicated issue for the company gets into Japanese market. Also it exists in the other eastern Asian countries like China and Korea. This phenomenon means that the Japanese people always support the companies which from domestic manufacturers. And it is very hard for foreign merchandise to compete with the local goods, and in this case, specifically the toys.
So, how to solve this problem if Toys R Us steps in Japanese market? If their Japanese competitors use the nationalism to destroy Toys R Us market, How to turn the situation? Furthermore, this problem is recently very important for the international business because the political atmosphere is serious between some Asian countries. If you are doing international businesses between these countries, how would you face this negative situation?
In my consideration, South Korea might not be a good choice for the two professors to open a coffee shop no matter it is franchising or other types.
South Korea is not a new rising country on economy; the fastest developing period of South Korea is during the 70s’ to 90s’. So it demonstrates that the service industry has been developed for more than 40 years in South Korea. And the service industry is very prosperous including the coffee shops currently. And it’s kind of saturated. Thus, those busy people who want get relaxed like the high reputation and well known